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F&O Margin Calculator

Select exchange
  • NSE
  • BSE
Select product
  • Futures
  • Options
Call
  • Call
  • Put
(Lot size)

Combined margin requirements

Span

0

Exposure Margin

0

Total Margin

0

Margin Benefit

0

Exchange Contract Product Strike Quantity Initial margin Exposure Total
Grand Total

₹ 0

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What is a Margin Calculator in Trading?

A margin calculator helps traders estimate the margin required to open a trade based on the lot size, product type, and leverage offered by the broker. Instead of working out the numbers manually, you simply enter the contract, quantity, and segment to get the exact margin required.

It helps you:

  • Plan your capital before entering a trade
  • Avoid order rejections due to insufficient margin
  • Compare margin requirements across different segments
  • Manage risk by understanding your upfront cost

How Is the Margin Requirement Calculated?

The margin requirement is calculated based on the total trade value and the leverage allowed in that segment. The basic formula is:

Margin Required = (Trade Value ÷ Leverage)

Where:

  • Trade Value = Price × Quantity
  • Leverage = Multiplier offered in that segment

Example:

If you buy 1 lot of a stock futures contract worth ₹5,00,000 and the broker offers 5x leverage,
Margin Required = 5,00,000 ÷ 5 = ₹1,00,000

A margin calculator performs this automatically and also factors in:

  • SPAN margin
  • Exposure margin
  • Exchange-mandated requirements

Types of Margin

There are different types of margins in trading, especially in the F&O segment:

  • SPAN Margin

    – This is the Standardised Portfolio Analysis of Risk. It calculates the maximum loss your position may face under multiple market scenarios. Since it updates several times a day, SPAN margins change based on volatility and market movements.
  • Exposure Margin

    – Charged over and above SPAN. This serves as an additional safety layer to protect against unexpected market swings.
  • VaR Margin

    – Value at Risk margin applies mainly to equity trades. It estimates the likelihood of loss based on historical price movements and volatility.
  • ELM (Extreme Loss Margin)

    – A compulsory exchange-defined margin for equities to protect against sudden, sharp price shocks.

When Do You Need a Margin Calculator?

You need a margin calculator whenever you place trades in segments like equity intraday, futures, options writing, or currency trading. It helps you check the exact margin required for each order so you don’t face any surprises after executing the trade.

It is useful when you want to:

  • Compare margin across different stocks or contracts
  • Understand how leverage affects capital requirements
  • Plan trades without blocking unnecessary funds
  • Evaluate multiple trade setups before entering the market

How to Use the Bajaj Broking Margin Calculator?

To use the Bajaj Broking Margin Calculator,

  • Select the exchange (NSE or BSE).
  • Product segment (Futures or Options),
  • Enter Scrip,
  • Your action (Buy or Sell), and
  • Quantity.

Once these inputs are added, the calculator instantly shows the span margin, exposure margin, total margin, and any margin benefit. This helps you clearly understand your margin obligation and plan your capital before placing the trade.

Frequently Asked Questions

What is the SPAN margin and how is it calculated?

Answer Field

SPAN is the short form of Standardised Portfolio Analysis of Risk. It’s an upfront margin collected by the broker before a derivative trade is initiated. SPAN margin calculation considers multiple scenarios to better understand the maximum loss amount a position can suffer in one trading day.

How does a margin calculator work?

Answer Field

The margin calculator makes use of a formula to determine the margin amount a person needs to deposit to cover the risk associated with a trade. The important factors which this calculator considers are an asset’s current market price, its volatility and the time left till its expiry.

How to Use Span Margin Calculator?

Answer Field

Enter information such as contract, quantity, and instrument type into a span margin calculator. It uses market volatility to determine margin requirements. Recognize risk because increased volatility can result in higher margin. Make wise trading decisions based on the results, making sure you have enough money to cover any losses. Update inputs frequently to ensure accurate computations

What is the margin requirement for cash market transactions?

Answer Field

There is no margin requirement for delivery trades in cash markets. But, the margin requirement is 20% of the total value of trade, when it comes to intraday trades in the segment.

What is the Value at Risk (VaR) margin?

Answer Field

Value at Risk margin indicates the probability of loss in the value of an asset. One can arrive at this figure through statistical analysis of an asset’s volatility and its historical price. Stock exchanges collect margin for 1 day for liquid securities and for 3 days for illiquid securities.

What is the extreme loss margin?

Answer Field

Extreme loss margin is a margin collected by stock brokers over and above the SPAN margin. The main aim behind collecting extreme loss margins is to offset the risks that may arise due to unpredictable market movements.

What are the other ways to use an F&O margin calculator?

Answer Field

You can use an F&O margin calculator to optimise your trade. Calculate the margin requirement for each trade and get a better understanding of the risks associated. You can identify potential hedges which may protect against unexpected market movements. Moreover, you can understand the appropriate position size depending on your risk tolerance.

What are some of the tips for using a margin calculator?

Answer Field

 Remember that margin requirements for F&O trading undergo frequent changes. So, it's important to keep monitoring them. Using different scenarios for analysing margin requirements is also important. You can use historical data for margin requirement analysis and track expiry dates regularly.

What information do I need to input into a margin calculator?

Answer Field

You need to input the exchange, segment, product, scrip, action (buy/sell), and quantity (lot size) into the margin calculator. This data helps the calculator estimate the margin required for your trade.

Can a margin calculator predict my potential profits and losses?

Answer Field

A margin calculator primarily estimates the margin required for a trade. It does not predict potential profits or losses but helps ensure sufficient funds are available for the chosen trade action.

Are there any limitations when using a margin calculator?

Answer Field

Yes, a margin calculator doesn’t account for market volatility, unforeseen fees, or slippage. It only provides margin requirements and may not reflect real-time market conditions or other factors impacting your trade.

How often should I use a margin calculator in my trading routine?

Answer Field

Use a margin calculator every time you plan a trade to ensure you have the required margin available. Regular use helps manage risk and ensure informed decision-making in your trading routine.

What are the benefits of a margin calculator?

Answer Field

A margin calculator helps estimate required margins, enabling better risk management. It allows you to plan trades effectively, ensuring sufficient funds while providing transparency on leverage and trading positions.

Does the margin calculator include brokerage and statutory charges?

Answer Field

No, the margin calculator simply estimates the margin needed for your trade and displays the SPAN, exposure and total margin. This does not include brokerage, transaction charges, GST or other statutory costs. The calculator focuses solely on margin calculations based on the exchange-specified risk parameters for the particular contracts and does not include transaction costs that the user may incur.

Can a margin calculator be used for currency and commodity trading?

Answer Field

Yes, a margin calculator can be used for several segments, including equity, currency and commodity derivatives. The user can select the exchange segment, enter the contract specifics, and obtain SPAN, exposure, and total margin values. It helps determine margin requirements for different asset classes and trading instruments available on the exchange.

Does a margin calculator work for intraday as well as delivery trades?

Answer Field

Yes. The margin calculator can be used for either intraday or carry-forward trades. The user can select the product type when entering the contract specifics. There is a different margin requirement for intraday and delivery trade positions, and the calculator reflects these differences based on the exchange's margin structure for each product type.

Can margin calculators show exposure for hedged positions?

Answer Field

Margin calculators can indeed display exposure for hedged positions. When offsetting positions are added, the total margin will automatically adjust to comply with exchange regulations. This represents the decrease in margin that occurs from holding two or more positions that partially or fully hedge each other within the exchange parameters.

How accurate is an online margin calculator compared to exchange calculations?

Answer Field

Online margin calculators utilise SPAN and exposure models prescribed by the exchanges, giving a close approximation to the official margin calculation framework. While the calculations might differ slightly on occasion due to rounding or delayed updates to exchange margin files, the results provide illustrative estimates, consistent with exchange guidelines, of what the margin will likely be, but are not often indicative of live real-time price shifts.

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